Where to invest in Africa

Africa is of great interest to a lot of investors because there’s a population of around 1 billion and lots of natural resources, but investing in the continent carries inherent risks, especially for European investors who aren’t sure where to invest in Africa.
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North, East, South or West?

Finding the right country to invest in is very difficult but it’s vitally important because unlike Europe, investing in Africa varies a lot depending on the area you’re putting your money into. Northern African countries have a lot of oil assets and other major attractions, while South Africa is a well establish market for diamond traders.

South Africa

This country is seen as the most stable in the region so it’s the one that most investors look to when they want to put their money into the continent. The economy’s driven by raw materials and mining and it’s the world’s largest producer of platinum, chromium and gold. The banking sector is very mature and the country’s also known for its agriculture.

Northern Africa

In this region you’ll find Egypt, Libya, Tunisia, Morocco and Algeria. Many of these nations are known for their crude oil reserves. Libya currently holds the continent’s largest oil reserves and the eighth largest in the world, so this is the place to put your cash if you’re going to invest in the oil market.

Risk or reward

Investing in Africa is seen as a risk but there are great rewards to be had. According to the Overseas Private Investment Corporation (OPIC) and UNCTAD, Africa offers the highest return on foreign direct investment which makes the continent very attractive. Unfortunately, civil unrest, a lack of enforceable laws and other economic and social hurdles face businesses that put their money into Africa.

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